EPA Begins Allocation of Water Infrastructure Funds

 In Industry Highlights

water infrastructure funds

The Environmental Protection Agency (EPA) has started distributing the water infrastructure funds from the infrastructure bill that Joe Biden signed into law in November 2021.  The funds will be allocated to communities across the U.S.  Through the bill, the federal government will provide $50 billion for water and wastewater infrastructure over the next 5 years.

How the Water Infrastructure Funds will be Allocated

It goes without saying that the water and wastewater infrastructure in this country is in dire need of rehabilitation.  Some of the pipes spanning the nation are more than 100 years old, and have not been replaced simply due to lack of funds, bandwidth and expertise.

Overall, nearly 90% ($44 billion) of the Biden Administration’s water infrastructure funds will go through State Revolving Funds, which provide financing to communities and utilities to upgrade their infrastructure.  The federal government does not control where the money gets spent but strongly encourages that a large chunk of these funds is provided to underserved communities.

The EPA has already announced that $600 million is going to California, over $275 million to Florida and nearly $200 million to North Carolina.  And another $1.4 billion could go to Michigan, pending passage of Michigan’s own state-specific $3.3 billion infrastructure bill in early 2022.

Categorically, $15 billion is earmarked for replacing lead pipes, and $10 billion is earmarked for addressing pollution from toxic, so-called “forever chemicals” used in things such as cookware, carpets and firefighting foams (i.e., PFAS).

These are all great causes, and I am ecstatic that our nation’s water infrastructure is getting the influx of cash it needs to at least partially address it’s deteriorating condition.  Hopefully all the water infrastructure funds will be spent wisely and efficiently to improve drinking water quality, reduce environmental impacts, reduce the percentage of pipes made from lead, and reduce outages from things like water main breaks.

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